Date: For Parliament Sitting on 9 January 2024

Name and Constituency of Member of Parliament

Mr Don Wee, MP, Chua Chu Kang GRC

Question:

To ask the Prime Minister (a) whether MAS can regulate the amount of bank charges levied on cashier’s orders made to the account holders’ own names for withdrawal of money from their bank accounts; (b) if so, what is the ceiling limit for these charges; and (c) what assistance will be provided to the lower-income elderly, including the illiterate and digitally illiterate, who may have to pay such charges to withdraw their own savings in the form of cashier’s orders.

Answer by Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of MAS:

1. Cashier’s orders are typically used for large transactions such as property and vehicle purchases, where certainty of payment is critical. Issuing cashier’s orders involves additional processing compared to regular cheques and banks charge a fee (currently $3 - $15 depending on mode of application) to cover these costs.

2. MAS generally does not set limits on the fees charged by banks for their products and services, but expects banks to clearly disclose the fees and deal fairly with their customers. For the first cashier’s order payable to the account holder’s own name, some of the major retail banks would waive the fees. Some other banks that do not automatically waive the fees would consider doing so on request from customers with financial difficulties, including the lower-income elderly.

3. For consumers who wish to transfer their funds to an account in another bank, there are alternative methods of funds transfers, such as via ATM or internet banking services, that can be used free of charge.

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